9. PROJECT MANAGEMENT GOVERNANCE POLICY Redacted
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9. PROJECT MANAGEMENT GOVERNANCE POLICY Redacted


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ITEM: 9 
 
 PAGE: 1 
 
REPORT TO: POLICY & RESOURCES COMMITTEE ON 7 JUNE 2016 
 
SUBJECT: PROJECT MANAGEMENT GOVERNANCE POLICY 
 
BY: CHIEF EXECUTIVE 
 
1. REASON FOR REPORT 
 
1.1 This report presents the Council\u2019s new approach to project management and 
associated administration. It describes the proposed corporate approach to 
project management governance and provides assurance to Elected Members 
that processes and controls are in place to ensure successful project delivery 
within the Council. 
 
1.2 This report is submitted to Committee in terms of Section III A (2) and (42) of the 
Council's Scheme of Administration relating to managing the finances of the 
Council and the organisation and management processes of the Council. 
 
 
2. RECOMMENDATIONS 
 
2.1 It is recommended that the Committee approves the: 
 
(i) implementation of a corporate Project Management Governance Policy 
for managing projects; and 
 
(ii) funding of £35,000 from Reserves for training as detailed in paragraph 
7.3 of the report. 
 
 
3. BACKGROUND 
 
3.1 On 25 May 2016, Full Council approved the establishment of a small dedicated 
Programme Management Office (PMO) team to support and administer 
appropriate projects and programmes (paragraph 7 of the draft minute refers). 
The report also referred to an associated draft policy to ensure there are 
consistent standards and disciplines applied to all projects and programmes. 
 
 
ITEM: 9 
 
PAGE: 2 
 
4. THE PROJECT MANAGEMENT GOVERNANCE POLICY 
 
4.1 A key responsibility of the PMO is the ownership and administration of the 
corporate Project Management Governance Policy (The Policy). A copy of The 
Policy is attached at Appendix 1. The Policy provides a framework for 
accountability and responsibilities, ensuring that project decision making is robust, 
logical and that projects provide value to the organisation. It offers a mechanism 
for ensuring that accurate and appropriate project status reports are presented 
regardless of the Service running the project or the type of project. 
 
 
5. RESPONSIBILITIES 
 
5.1 A core principle that applies for all projects, irrespective of the delivery 
methodology and terminology used, is that of accountability and responsibility. 
The point of accountability for a project is the Director of the Service that is leading 
on the project. Responsibility for ensuring that the project runs in compliance with 
corporate policy sits with the Project Sponsor (also referred to Senior Responsible 
Officer (SRO)). For construction projects, this role is sometimes known as the 
Project Owner - but the responsibilities are the same. It is acceptable for the 
Director to also have the role of Project Sponsor. The PMO will support all 
accountable and responsible officers. 
 
5.2 The governance hierarchy, as shown in the diagram below, outlines the flow of 
reporting and decision making. The PMO will support this process. The hierarchy 
is based on existing high-level governance arrangements as there seems to be 
little benefit in creating a new structure. Instead, the roles of the various bodies 
will be defined more clearly. The exception is the Transformation Programme 
Board which replaces the defunct DBS Programme Board. 
 
5.3 Each programme will comprise of component projects. Each project will have a 
Project Board. The Project Sponsor/SRO is responsible for setting up and 
chairing the Project. The Project Sponsor/SRO must ensure that all the 
responsibilities assigned to the Project Board are met. Whilst these 
responsibilities may be devolved to the Project Manager, accountability remains 
with the Project Sponsor/SRO. The resource, grade and knowledge associated 
with each role will vary depending on the project. The corporate PMO will support 
all roles. 
 
5.4 The Project Board will provide assurance to the relevant higher level Programme 
Board that appropriate risk mitigation plans are in place for all project risks, 
regularly monitor the viability of the mitigation and report any exceptions. The 
PMO will facilitate this process. 
 
ITEM: 9 
 
PAGE: 3 
 
 
 
 
 
6. PROCESS 
 
6.1 A critical element of The Policy is the Gateway Process. Abbreviated Gateway 
formats are already used by ICT, Procurement and the Asset Management Group. 
The process is built on the following elements: 
i. Key Principles - the basic rules that affect all projects during the project life 
cycle. The 6 major stages of a project lifecycle \u2013 Conception, Definition, 
Initiation & Planning, Delivery, Closure and Post Project Review. 
 
ii. Structure, Accountability and Responsibilities - who does what and what 
role they play in project governance. 
 
iii. Governance process (Gateways) - defines the trigger points for mandatory 
governance checks on project status and the evidence required for 
governance approvals. 
 
iv. Project Reporting and Standard Processes \u2013 defines the reporting 
requirements and the acceptable way of working within the governance 
framework. 
 
ITEM: 9 
 
PAGE: 4 
 
v. Prioritisation - doing the right projects recognising the organisation\u2019s 
capacity constraints to undertake the work. 
 
vi. Capability - It creates the environment to do the selected projects and 
programmes right and the development and maintenance of an effective 
capability. 
 
vii. Continuous Improvement - to validate the usefulness and efficiency of the 
ongoing work which feeds back into the selection and capability aspects of 
governance. 
 
6.2 Although the key principles are seen as best practice for all projects, in order to 
not stifle through bureaucracy the process will apply specifically and will be 
enforced for: 
\uf0fc Requires significant capital or revenue investments \u2013 significant investment 
means having a value of £1M or more over the lifecycle of the project; or 
\uf0fc Projects whose implementation exhibits a high level of complexity, 
ambiguity, tension, uncertainty or risk as identified during categorisation in 
accordance with Appendix 4; or 
\uf0fc Projects that are forecast to deliver substantial cost savings as identified by 
the Council\u2019s Corporate Management Team (CMT). 
 
6.3 All projects are categorised as Basic, Intermediate or Strategic. The category 
determines the process, governance and reporting requirements. The criteria to 
be considered for categorisation are Corporate Impact (including £ value) and 
Complexity. Projects will be rated against each factor using a low/medium/high 
rating. 
 
6.4 The information required for each stage of the process is determined by the 
category of the project. The table below outlines the documentation required at 
each gateway for intermediate and strategic projects. 
 
 
Concept\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026...\u201dProject Life Cycle\u201d\u2026\u2026\u2026\u2026\u2026\u2026\u2026.Closure 
ITEM: 9 
 
PAGE: 5 
 
6.5 For clarity and to help understanding, definitions of a project, programme and 
programme management are detailed below (APM Body of Knowledge, 6 th 
Edition): 
 
\uf0b7 A Project is a unique, transient endeavour, undertaken to achieve planned 
objectives, which could be defined in terms of outputs, outcomes, benefits or 
strategic objectives. 
o Outputs - are the tangible or intangible products typically delivered by 
the project. 
o Outcomes \u2013 are the changed circumstances or behaviours that result 
from the use of an output 
 
\uf0b7 A Programme is a group of related projects and change management 
activities that together achieve beneficial change for an organisation. 
 
\uf0b7 Programme Management is the coordinated management of projects and 
change management activities to achieve a beneficial change. 
 
6.6 To further help address any ambiguity defining